The NFT market has exploded in popularity recently. Overall, it has revolutionized how people share and collect digital art. Digital artists are currently using NFTs as a way to monetize their art and connect with their community more efficiently. While NFTs are mainly used for digital art, these can be used to represent ownership of any digital asset.
NFTs took the world by surprise, and even now, not many people understand how they work or how they can make money with NFT art. Thankfully, there are dozens of sources where you can learn everything about how NFTs work, and we compiled them all in this article.
If you want to learn more about NFTs, where you can find them, and how you can make money with them as a digital artist, keep reading this article!
What Is an NFT?
NFT stands for “non-fungible token.” When an asset is “non-fungible,” it means that it cannot be traded for other similar items. In essence, when you have a non-fungible token, you’re holding a one-of-a-kind item. An NFT can be used to represent ownership of a wide variety of items online, and they can also be bought and sold indefinitely.
Once someone tokenizes an asset, it’s automatically secured on Ethereum blockchain technology, meaning no other person can alter the NFT’s records. In other words, the current NFT owner is unique.
On the other hand, when you have fungible tokens, you can easily trade them with an asset of similar properties; this is the case with money. If you have a $20 bill, you can change it for two $10 bills and keep the same value.
What Is the Difference Between an NFT and a Regular Internet File?
There’s an ongoing debate on whether it’s worth purchasing an NFT or not. Considering NFTs are only used to represent ownership of digital artwork or others, many people have asked themselves: “Can’t I just copy/download the file?”
The short answer is: Yes, you can. There’s nothing stopping anyone from downloading a digital file and keeping it on their computer. One of the most popular cases with NFTs happened with the artist “Beeple.” In March 2021, Beeple sold a print for $69 million; this made Beeple one of the artists with the highest-value NFTs in the world today. The digital piece that was sold was called: “Everydays – The First 5000 Days.”
Despite the NFT being valued at several millions of dollars, that didn’t stop people from copying and sharing the NFT art hundreds of times. In that case, what’s the point?
Keep in mind that while NFTs can essentially be copied hundreds of times, these users don’t hold any copyright ownership for that piece of work. Many people compare NFT tokens to autographed prints; some people may have the same print, but it’s the autograph that makes it one of a kind.
In other cases, new NFT owners can use the NFT marketplaces to continue selling the NFT, giving the original owner a percentage of profit. Overall, NFT tokens may be used to have proof of ownership stored in the public record and to place assets like art in a safe online environment, such as the Ethereum blockchain. On the other hand, regular internet assets are stored on regular servers and don’t offer any proof of ownership you can verify online.
What Are NFTs Used For?
Now that you know NFT stands for “non-fungible token,” it’s time to learn more about how it works within the Ethereum blockchain. As mentioned before, an NFT token is used to assign ownership of digital assets, which can be any of the following:
- Legal Documents
Overall, people could mint any asset into an NFT, all it takes is to be creative with it. Most users use NFTs for minting an image, video, game, artwork, and other items of value. It’s important to note that NFTs may only have a single owner at a time on the marketplace. The ownership is assigned through unique IDs and metadata on the Ethereum cryptocurrency blockchain, which no other asset can replicate.